KFTC’s digital market regulation trends

South Korea: KFTC’s digital market regulation trends

This is an Insight article, written by a selected contributor as part of GCR’s co-published content. Learn more about Insight

Introduction

The Korea Fair Trade Commission (KFTC) has recently undergone a significant expansion of its investigative organisation and capabilities, published numerous policy reports and work plans on digital markets, and reached important conclusions in major cases targeting online platforms, thereby strengthening its regulation of digital markets.

This article examines the KFTC’s digital market regulation trends over the past year in the following order: (1) the KFTC’s regulatory direction for online platforms; (2) significant regulatory cases; (3) amendments to and enforcement of the Act on Consumer Protection in Electronic Commerce (the E-Commerce Act); (4) dark pattern regulations and voluntary rules; (5) online advertising regulation; (6) regulation of unfair terms and conditions; and (7) discussions on additional legislation for digital markets.

KFTC’s regulatory direction for online platforms

Since the second half of 2025, the KFTC has published a number of materials providing insight into its regulatory direction for online platforms. This section examines: (1) the online platform-related portions of the KFTC’s 2026 work plan; (2) the KFTC’s recent organisational expansion and its implications for online platform regulations; (3) the KFTC’s policy reports on “data and competition” and on consumer issues surrounding subscription economy; and (4) the KFTC’s market survey on AI services.

KFTC’s 2026 work plan

The KFTC’s 2026 work plan, announced on 19 December 2025, includes a section on regulatory direction for digital markets.^[1] The key digital market-related items are as follows:

• Strengthening surveillance of abusive conduct in digital markets: the KFTC stated that it would intensify monitoring and enforcement in the mobile and digital infrastructure sectors as well as the delivery application sector, with particular focus on conducts that impose disadvantages on trading partners and leveraging of market dominance into the AI and cloud sectors.
• Supporting digital market legislation: the KFTC stated that it would support additional legislation to strengthen transaction stability and transparency between platforms and business users, as well as ensuring that the regulations are not biased against foreign companies.
• Building innovation and competition ecosystems through merger reviews: the KFTC stated that it would rigorously review anticompetitive effects in mergers involving big tech companies, crypto asset businesses and platforms.
• Improving the digital consumer environment: the KFTC stated that it would (1) classify advertisements utilising AI-generated virtual persons without disclosure regarding such use of AI image as deceptive advertising, and (2) review pricing display practices on online platforms and rectify those that may deceive consumers.
• Amendments to the E-Commerce Act:^[2] the KFTC stated that it would expand the scope of platforms’ direct liability to consumers, including joint and several liability with the sellers for consumer damages where the platform has acted as if it were the seller.

KFTC’s organisational expansion and online platform regulations

In March 2026, the KFTC recruited 167 additional staff to bolster its investigative capacity.^[3] Given that the KFTC’s existing workforce was approximately 650, this represents an increase of approximately 25% in the first half of 2026.

KFTC Chairperson Biung-Ghi Ju held a briefing on 26 May 2026 at which he outlined plans for deploying the expanded workforce. In particular, Chairperson Ju announced the establishment of the “Priority Investigation Planning Division”, which would focus intensively on investigating and regulating monopoly and oligopoly issues on online platforms.^[4] He also announced the creation of the “Economic Analysis Bureau”, which he described as “an organisation to analyse anticompetitive conduct such as platform data monopolies and algorithmic self-preferencing.”^[5]

Subsequently, on 23 June 2026, the KFTC announced the plan to further increase its authorised headcount to 1,052, underscoring the KFTC’s commitment to strengthening its enforcement capacity for complex cases involving online platforms.^[6]

In sum, the KFTC has expanded its organisation to investigate anticompetitive conduct on online platforms and has acquired economic analysis capabilities to support such investigations. Online platform operators conducting business in Korea should note that the KFTC is now positioned to pursue more aggressive investigations in this area.

KFTC publication: data and competition policy report

On 30 December 2025, the KFTC published a policy report entitled “Data and Competition”, signalling its focus on the role of data in digital markets.^[7] The report identifies three principal types of data-related anticompetitive conduct:

• where a business exclusively holds data critical for providing digital services, competing businesses may be excluded from the market, and such data may need to be treated as an essential facility;
• where a business restricts collection of competitors’ data or refuses to provide data under the pretext of privacy protection, competition in the relevant market may be impaired; and
• where a business possesses market dominance or a commanding data advantage, it may limit interoperability with competing services in adjacent markets and engage in self-preferencing.

The report also addresses the related consumer harm. The KFTC noted that personalised pricing using large-scale data may reduce consumer welfare, and that a business may offer low prices to consumers with low willingness to pay in order to foreclose rivals. Dark patterns were also identified as a concern in both purchasing decisions and data consent. The report further flagged data pooling among competitors as potential concerted conduct, and stated that the competitive value of information assets would be considered in merger reviews.

KFTC publication: subscription economy and consumer issues policy report

On 30 December 2025, the KFTC published a policy report on “Subscription Economy and Consumer Issues”, noting that consumer issues in digital subscription services have become increasingly sophisticated.^[8] The report proposes improvements centred on three transaction stages: (1) before contract formation, businesses should present cost information to consumers which can be understood intuitively; (2) during contract performance and renewal, businesses should proactively notify consumers of material amendments to the terms; and (3) at the termination stage, businesses should avoid complex cancellation procedures and opaque fee policies.

KFTC market survey: AI services market

The KFTC has commenced a market survey on the AI services sector targeting 29 major domestic and foreign AI service developers and 17 major AI-integrated product providers. Key survey items include: (1) current status of AI functions and service integration; (2) competitive conditions in the AI services market; (3) methods of providing AI services to consumers; and (4) whether respondents have experienced anticompetitive practices or unfair trade practices. The KFTC has previously indicated in the relevant research task instructions that key survey items would include technical methods of AI service integration, the degree of access to and openness of devices and operating systems, and collection of and access to user data.

Regulatory cases

Naver Shopping case (Supreme Court decision)

On 16 October 2025, the Supreme Court of Korea rendered its decision in the Naver Shopping case.^[9]

According to the KFTC’s original decision, Naver operated Naver Shopping, a comparison shopping service that aggregates product information from various online shopping malls and provides search results to consumers. Naver also operated Smart Store, its own “open market” – an online marketplace where third-party sellers can freely list and sell products (online marketplaces of this type are commonly referred to as “open markets” in Korea).^[10] The KFTC found that Naver manipulated the search algorithm used in Naver Shopping to favour its own Smart Store listings over those of competing open markets, and classified this conduct as abuse of market dominance.

The Supreme Court held that the anticompetitive effects of Naver’s conduct had not been sufficiently established and remanded the case to the Seoul High Court. The Court’s reasoning was as follows:

• Insufficient proof by the KFTC: the KFTC emphasised that comparison shopping services constitute a channel through which users are directed to open markets, and therefore ranking order in comparison shopping services plays an important role. The Supreme Court held, however, that for conduct to qualify as abuse of market dominance, the mere occurrence of a disadvantage to a particular business is insufficient; there must be demonstrated intent or purpose to maintain or strengthen a monopoly and a concrete risk of anticompetitive effects. Therefore, the Supreme Court was of the view that there was insufficient proof of concern for an anticompetitive effect only by virtue of the fact that comparison shopping services constitute a channel for the users.
• No harm to competing open markets: the proportion of total transactions on competing open markets attributable to traffic from Naver Shopping was relatively low. Furthermore, total transaction amounts on competing open markets continued to grow, and the number of merchants on those platforms was maintained.
• Presence of new entrants: viable new competitors entered and established themselves in the open market, demonstrating that effective competition continued.

Importantly, the Supreme Court clarified that online platforms have no legal obligation to treat all merchants equally. Self-preferencing is not per se illegal and can be a legitimate business practice in the absence of anticompetitive effects and intent. The Supreme Court affirmed its effects-based approach in assessing the unreasonableness of self-preferencing conduct by online platforms, consistent with the POSCO case (2007), holding that unreasonableness must ultimately turn on harm to competition. The Supreme Court further held that an online platform operator’s design of its search algorithm reflecting its own business judgment and strategies constitutes normal business activity and competition on the merits.

Google (YouTube) consent decree case

Google sold ad-free YouTube video viewing (“YouTube Video”) and YouTube Music together as a single bundled product called “YouTube Premium”. While Google offered YouTube Music as a standalone subscription in Korea, it did not offer the video service separately.^[11] The KFTC investigated whether this practice constituted illegal tying, noting that YouTube Music’s market share by active users increased more than six-fold during the bundling period.

Following Google’s application for a consent decree, the KFTC initiated the consent decree procedure on 14 May 2025 and finalised it on 19 November 2025. The corrective measures comprise four elements:

• Google must launch “YouTube Premium Lite”, a video-only subscription, and operate it for a minimum of 48 months.
• Google must offer YouTube Premium Lite at 8,500 Korean won on Android/web and 10,900 Korean won iOS, maintaining these prices for 12 months. The domestic price ratio (YouTube Premium Lite to YouTube Premium) was set at the lowest among the 19 countries where the product was launched.
• Google must maintain the price of YouTube Premium for 12 months following the launch of YouTube Premium Lite.
• Google contributed 30 billion Korean won to a co-prosperity fund managed by the Korea Educational Broadcasting System (EBS) to support the domestic music industry for four years, recognising that the tying had distorted competition in the domestic online music service market.

Gmarket and AliExpress merger case

Shinsegae Group (Apollo Korea) and Alibaba Group (AliExpress International) proposed to establish a joint venture that would hold 100% of the shares in Gmarket (operating the Gmarket and Auction online marketplaces) and AliExpress Korea.^[12]

The KFTC defined the relevant market as the domestic online cross-border shopping market and determined that the horizontal overlap raised significant competition concerns.^[13] The core competition concern was the combination of data assets: Gmarket’s domestic consumer data, accumulated over more than 20 years, combined with AliExpress’s AI-powered marketing technology, could significantly strengthen the merged entity’s market position.^[14] The KFTC noted that the cross-border shopping market exhibits network effects (“user data accumulation leading to personalised advertising and service quality improvement, which in turn leads to increased user traffic”), amplifying anticompetitive effects. The combined market share was approximately 41%.

The KFTC also considered vertical and conglomerate dimensions but found no anticompetitive effects.^[15]

Rather than prohibiting the merger, the KFTC imposed behavioural remedies with a three-year term (extendable based on market conditions):^[16]

• Gmarket and AliExpress must technologically separate all domestic consumer data.
• Neither party may use the other’s domestic consumer data for its own cross-border shopping services.
• The parties must provide consumers with a meaningful opt-in/opt-out mechanism regarding cross-platform data sharing.
• Neither party may reduce its data protection standards to below the pre-merger levels.
• Gmarket/Auction and AliExpress must be operated independently by separate legal entities.

E-Commerce Act violation cases (dark pattern enforcement)

The E-Commerce Act prohibits e-commerce businesses from using deceptive methods to solicit or transact with consumers, or from obstructing the exercise of withdrawal rights or contract cancellation.^[17] In October 2025, the KFTC announced enforcement actions against the following dark pattern cases:^[18]

• Manipulative consent button (Company A): in the process of obtaining consent to a membership price increase, the operator displayed the consent button prominently while making the opt-out button small and inconspicuous, leading consumers to inadvertently consent.
• Hidden early cancellation (Company B): the operator failed to inform consumers that early cancellation was available, concealing this option from purchase, cancellation and FAQ screens.
• Failure to disclose withdrawal rights (Company C): the operator failed to adequately notify consumers before contract formation of the deadline, method and effect of exercising withdrawal rights.^[19]

Amendments to and enforcement of the E-Commerce Act

Amendments to the E-Commerce Act were promulgated on 20 January 2026 and are scheduled to take effect on 21 January 2027.^[20] The KFTC issued a legislative pre-announcement of draft amendments to the enforcement decree and enforcement rules on 11 March 2026.^[21] The amendments reflect changes in the digital transaction environment and aim to strengthen the consumer protection framework. The principal amendments are as follows:

• Obligation to designate a domestic agent (foreign companies): foreign online businesses or intermediaries above certain thresholds must designate a domestic agent. The draft enforcement decree defines applicable companies as those with: (1) total revenue of 1 trillion Korean won or more in the preceding year; (2) a monthly average of one million or more domestic consumers accessing the company’s website; or (3) companies requested by the KFTC to submit reports or materials in connection with consumer harm. This measure aims to ensure effective dispute resolution and law enforcement in respect of foreign operators.
• Consumer review information disclosure: where e-commerce companies post consumer reviews, the amended act requires disclosure of information regarding the collection and processing of such reviews, enhancing transparency given the significant influence reviews have on purchasing decisions.
• Introduction of consent decree system: the amended act introduces a consent decree system for cases involving alleged E-Commerce Act violations, enabling swift and effective consumer harm remediation.
• Obligations for online intermediaries in C2C transactions: intermediaries must verify individual sellers’ identity, provide seller information and transaction records to courts or dispute resolution bodies upon request, inform parties of payment escrow services, and clearly distinguish between individual sellers and business sellers. This addresses limitations of the existing act, which was primarily designed for B2C transactions.

On 23 April 2026, the KFTC held a policy communication meeting with major second-hand trading platforms to encourage compliance with the amended provisions, signalling that it intends to actively enforce the new C2C regulations.^[22]

KFTC’s dark pattern regulation

KFTC’s dark pattern monitoring and corrective actions

The KFTC and the Korea Consumer Agency conducted monitoring of online platforms in the subscription services, online shopping, rental and travel OTA sectors from February to July 2025, publishing the results on 30 September 2025.^[23] The major suspected dark pattern practices identified, and the corrective actions taken are as follows:

• Obstruction of cancellation/withdrawal (phone-only cancellation): platforms that allowed subscription via web or app but required cancellation exclusively through telephone calls. The KFTC required that cancellation also be available via web and app.
• Obstruction of cancellation/withdrawal (repeated confirmation): platforms that repeatedly asked consumers to reconfirm their intent to cancel. The KFTC required companies to reduce the number of reconfirmation steps.
• Hidden auto-renewal (free-to-paid conversion): platforms that charged for paid services upon expiration of a free trial without obtaining separate consumer consent. The KFTC required a separate billing confirmation step with clear “consent” and “decline” options.
• Hidden auto-renewal (price increase): platforms that charged increased subscription fees without obtaining separate consent. The KFTC required a separate consent procedure before any price increase with clear “consent” and “decline” options.
• False hierarchy: platforms that prominently displayed only “cancel recurring payment” on the cancellation screen while omitting or obscuring the “early cancellation” option (which allows immediate termination with a pro-rated refund). The KFTC required both options to be presented in parallel.
• Drip pricing: platforms that displayed prices excluding mandatory costs such as shipping fees, customs duties and taxes, disclosing additional costs only at the payment stage. The KFTC required platforms to display the total amount payable from the initial screen.

Voluntary code on online interface operations

The KFTC reviewed and approved the “Voluntary Code on Online Interface Operations” (the Voluntary Code) prepared by the Korea Online Shopping Association.^[24] The code took effect on 1 December 2025, with 28 major online shopping malls participating, including Coupang, Naver, 11st, Gmarket, Kurly, Musinsa, Danggeun Market, Lotte ON and Kakao Shopping.^[25]

The Voluntary Code covers six dark pattern types (hidden auto-renewal, drip pricing, pre-selected options, false hierarchy, obstruction of cancellation/withdrawal and repeated interference) as well as additional consumer-unfriendly interface types including covert cart additions, trick questions, false discounts, hidden information, price comparison obstruction and click fatigue.

A Compliance Review Committee, composed of trade association executives, law professors and consumer organisation representatives, periodically reviews participants’ compliance and may request improvements.

To incentivise participation, the KFTC announced that where a platform voluntarily corrects a practice under the Voluntary Code, and that practice is subsequently found to constitute a violation, the KFTC will issue a corrective recommendation (providing an opportunity for voluntary correction) before proceeding to formal enforcement.

Online advertising regulation

The Act on Fair Labelling and Advertising prohibits false, exaggerated or deceptive labelling and advertising that may distort fair trade order and mislead consumers.^[26] The KFTC has recently announced that it will apply more stringent standards to the review of labelling and advertising on online platforms.

KFTC’s recommendations on price discount display practices

On 19 May 2026, the KFTC and the Korea Consumer Agency published the results of their investigation into price discount display practices at major domestic online shopping malls.^[27] The investigation found that while discount rate displays serve as key marketing tools, certain misleading practices were identified. The KFTC issued the following improvement recommendations:

• Improving display of list prices: companies should explain the meaning and basis for calculating list prices on product detail pages, and add warning notices regarding potential legal liability for false list prices on seller registration screens.
• Distinction between standard and maximum discounts: discount rates should be displayed based on standard discounts available to all consumers; where conditional maximum discounts are displayed, the applicable conditions should be clearly indicated.
• Discount coupon terms: companies should ensure that consumers can easily verify key information including validity period, usage conditions and number of permitted uses during the coupon issuance process.
• Strengthened self-monitoring: companies should strengthen self-monitoring of price discount advertising and distribute the KFTC’s online dark pattern self-management guidelines^[28] to their merchants to encourage voluntary compliance.

KFTC’s revised guide on disclosure of financial interests

The KFTC has previously regulated the disclosure of financial interests between advertisers and third-party endorsers through its “Guidelines for the Review of Labelling and Advertising of Recommendations and Endorsements”. In response to the increasing prevalence of undisclosed paid promotions (“hidden advertising”) in online markets, the KFTC published a revised guideline on 2 December 2025.^[29] The principal revisions are as follows:

• Expanded scope of endorsement: the revised guide clarifies that endorsement encompasses not only positive evaluations or purchase recommendations but also indirect methods that may influence purchasing decisions, such as posting product images on social media, providing purchase links, offering discount codes and repeated exposure of products or brands.
• Expanded scope of financial interest: the revised guide clarifies that financial interests include not only direct economic consideration (cash, free products, points, discount benefits, sales commissions) but also relationships involving shared economic interests, such as employment, business partnerships and family relationships.

Regulation of unfair terms and conditions by online platform operators

As online platforms and digital services have become more widely used, the KFTC has been continuously monitoring cases in which platform operators use terms and conditions to establish favourable limitations on their own liability while restricting user rights. In 2026, the KFTC reviewed the terms of major open markets and performance venue membership services, requiring operators to voluntarily correct unfair clauses.

The principal unfair clauses identified in open market operators’ terms and corrected are as follows:^[30]

• Improper disclaimers of liability: clauses exempting the operator from all liability even where users suffer damages from personal <a href="https://bitcomme.com/south-korea-orders-financial-sector-security-checks-after-data-breaches/" title="South Korea orders financial sector security checks after data breaches”>data breaches, hacking or third-party illegal acts. The KFTC required operators to bear responsibility for damages attributable to their own intentional or negligent acts.
• Arbitrary operational policies: clauses allowing the company to apply its own operational policies over the agreed terms and conditions. The KFTC required that agreed-upon terms take precedence over the business’ operational policies.
• Deemed consent clauses: clauses deeming that a user has consented to amended terms if the user does not expressly object, even where the company has not adequately notified the user. The KFTC required individual notification of material amendments and clear explanation of the implications of consent.

The principal unfair clauses identified in performance venue and ticketing platform paid membership terms and corrected are as follows:^[31]

• Unfair refund restrictions: clauses refusing any refund where a user cancels after a certain period or after receiving partial benefits. The KFTC required refunds to be calculated on a reasonable pro-rated basis.
• Improper disclaimers of liability: clauses fully exempting the business merely because the user bears partial fault. The KFTC required businesses to bear responsibility for their proportionate share of damages.
• Restriction of user rights: clauses allowing deletion of user-generated content without prior notice or opportunity to respond. The KFTC required businesses to specify grounds for deletion and provide prior notice.

Online platform operators conducting business in Korea should review their terms and conditions for potential exposure to unfair terms regulation.

Discussion on additional regulation of digital markets

There is vigorous debate in Korea on whether additional regulation of online platforms is necessary. Proponents argue that new legislation is needed to either (1) enhance competition in digital markets, or (2) regulate the power imbalance in transactions between online platforms and their business users. On the other hand, there are significant views that additional regulation requires caution, given that online platforms are already subject to regulation under the existing Monopoly Regulation and Fair Trade Act (MRFTA) and the E-Commerce Act.

As noted above, the KFTC’s 2026 work plan indicated support for “additional legislation to strengthen transaction stability and transparency between platforms and business users”. Chairperson Ju stated at the International Competition Network meeting in Manila on 6 May 2026, that “in the absence of legislation governing online platforms, there is a concern that monopolised or oligopolised platform companies may continue unfair trade practices such as delayed payment settlement and shifting of advertising costs.”^[32]

Assemblyman Lee Jong-mun and 13 co-sponsors of the Democratic Party of Korea^[33] introduced the Act on Fair Intermediary Transactions on Online Platforms (Proposed Platform Bill) on 9 December 2025. The Proposed Platform Bill targets online intermediary transaction businesses – platforms through which transactions between business users and consumers are conducted^[34] – and its principal regulatory provisions are summarised in the table below.

Regulatory item	Key content
Intermediary transaction agreement	Mandatory written contract specifying contract period, renewal/termination terms, service content, fee structure, exposure criteria and settlement methods
Advance notice obligations	30 days’ prior notice for contract termination; seven days’ prior notice for service restriction or suspension; termination or modification without proper notice is void
Payment settlement and protection	Payment of sales proceeds within 20 business days; separate management of at least 50% of proceeds through financial institution deposit or payment guarantee insurance
Prohibited unfair practices (7 types)	Unjustified service suspension or refusal; discriminatory treatment; coerced transactions; demands for economic benefits; imposition of unfavourable terms; interference with business operations; coerced exclusive dealing
Anti-retaliation measures	Prohibition of disadvantageous treatment in response to participation in business user associations, filing of dispute resolution applications or cooperation with KFTC investigations
Business user associations	Right of business users to form associations for protection of rights and improvement of economic status
Dispute resolution	Establishment of a dispute resolution council within the Korea Fair Trade Mediation Agency
KFTC sanctions	Corrective orders, corrective recommendations, consent decrees and administrative fines (up to 10% of relevant revenue, maximum 5 billion Korean won)
Damages and injunctive relief	Liability for damages; treble damages for retaliation; recognition of business users’ right to seek injunctive relief
Criminal penalties	Retaliation violations: up to 3 years’ imprisonment or 200 million Korean won fine; non-compliance with corrective orders: up to 2 years’ imprisonment or 150 million Korean won fine

Given the significant views that additional regulation requires caution in light of the existing regulatory framework under the MRFTA and the E-Commerce Act, it remains to be seen whether the National Assembly will adopt additional platform-specific regulations. Any new regulation should be preceded by an objective, data-driven analysis of market failures and a cost-benefit assessment of the proposed regulatory measures.

Endnotes

^[1] Press release, ’2026 Major Work Plan’ [translated title], KFTC (29 December 2025), www.ftc.go.kr/www/selectBbsNttView.do?pageUnit=10&pageIndex=1&search Cnd=all&key=23&bordCd=2&nttSn=46824 (accessed 3 July 2026).

^[2] Refers to the E-Commerce Act.

^[3] ‘With Organisational Additions and Staff Expansion… KFTC Secures Rapid Investigation Capacity’ [translated title], Asia Today (9 March 2026), www.asiatoday.co.kr/kn/view.php?key=20260309010002440 (accessed 3 July 2026).

^[4] Chairperson Ju noted that the Priority Investigation Planning Division would also handle large-scale cartel cases and major conglomerate-related cases. ‘Biung-Ghi Ju: Statute of Limitations for Cartels Up to 15 Years… KFTC Establishes Priority Investigation Planning Division’ [translated title], ET News (27 May 2026), www.etnews.com/20260527000112 (accessed 3 July 2026).

^[5] ET News (27 May 2026), www.etnews.com/20260527000112 (accessed 3 July 2026).

^[6] ‘KFTC Authorised Headcount Substantially Expanded to 1,052; Investigation Bureau Revived After 21 Years’ [translated title], Globale (23 June 2026), www.globale.co.kr/news/articleView.html?idxno=38944 (accessed 3 July 2026).

^[7] Press release, ‘Publication of Data and Competition Policy Report’ [translated title], KFTC (30 December 2025), www.ftc.go.kr/www/selectBbsNttView.do?pageUnit=10&pageIndex=19&searchCnd=all&key=12&bordCd=3&searchCtgry=01,02&nttSn=46817 (accessed 3 July 2026).[7][7]

^[8] Press release, ‘Publication of Subscription Economy and Consumer Issues Policy Report’ [translated title], KFTC (29 December 2025), www.ftc.go.kr/www/selectBbsNttView.do?pageUnit=10&pageIndex=24&searchCnd=all&key=12&bordCd=3&searchCtgry=01,02&nttSn=46681 (accessed 3 July 2026).

^[9] Supreme Court of Korea, decision of 16 October 2025, Case No 2023Du32709.

^[10] Naver Shopping is a comparison shopping service that receives product information from various online shopping malls and provides search results to consumers. Smart Store is an open market (ie, an online marketplace where third-party sellers can freely list and sell products) operated by Naver.

^[11] Press release, ‘KFTC Finalises Google YouTube Consent Decree’ [translated title], KFTC (27 November 2025), www.ftc.go.kr/www/selectBbsNttView.do?pageUnit=10&pageIndex=34&searchCnd=all&key=12&bordCd=3&searchCtgry=01,02&nttSn=46438 (accessed 3 July 2026); KFTC Decision No 2025-222, 9 December 2025.

^[12] Press release, ‘Gmarket-AliExpress Merger Review Results’ [translated title], KFTC (18 September 2025), www.ftc.go.kr/www/selectBbsNttView.do?pageUnit=10&pageIndex=31&searchCnd=all&key=12&bordCd=3&searchCtgry=01,02&nttSn=46506 (accessed 3 July 2026); KFTC Decision No 2025-177, 13 September 2025.

^[13] Cross-border online shopping service refers to a service through which consumers purchase products located overseas and receive them across borders. The KFTC determined that online shopping services for domestically-traded products and cross-border shopping services constitute separate product markets due to significant differences in demand/supply substitutability and entry barriers.

^[14] In the cross-border shopping market, Alibaba Group held a 37.1% market share by transaction value in 2024 (first place), while Shinsegae Group held 3.9% (fourth place). The KFTC determined that data combination could enable a market position exceeding the combined market share (approximately 41%).

^[15] The KFTC also recognised vertical and conglomerate combinations but found no anticompetitive effects from these. Specifically, the KFTC found a vertical relationship between AliExpress’s domestic cross-border shopping service and Gmarket’s domestic fulfilment service but determined a low risk of foreclosure and coordination effects. The KFTC also found a conglomerate combination between AliExpress’s domestic cross-border service and Gmarket’s domestic simple payment service but determined no anticompetitive effects given other providers such as Naver Pay and Kakao Pay.

^[16] The KFTC set the remedies’ effective period at three years, with the possibility of extension based on market conditions.

^[17] E-Commerce Act, Article 21(1)

^[18] Press release, ‘Sanctions on E-Commerce Act Violations by 4 Operators’ [translated title], KFTC (15 October 2025), www.ftc.go.kr/www/selectBbsNttView.do?pageUnit=10&pageIndex=11&searchCnd=all&key=12&bordCd=3&searchCtgry=01,02&nttSn=47222 (accessed 3 July 2026).

^[19] The E-Commerce Act grants consumers the right to withdraw their offer within seven days from receipt of written contract details. The KFTC treated concealment of this withdrawal right as a dark pattern.

^[20] Legislation Committee’s December 2025 draft amendment to the E-Commerce Act.

^[21] Press release, ‘Legislative Pre-Announcement of Amendments to E-Commerce Act Enforcement Decree and Enforcement Rules, and Administrative Pre-Announcement of Amendments to Surcharge Guidelines’ [translated title], KFTC (11 March 2026), www.ftc.go.kr/www/selectBbsNttView.do?pageUnit=10&pageIndex=6&searchCnd =all&key=12&bordCd=3&searchCtgry=01,02&nttSn=47376 (accessed 3 July 2026).

^[22] Press release, ‘KFTC Holds Policy Communication Meeting with Second-Hand Trading Platforms’ [translated title], KFTC (23 April 2026), www.ftc.go.kr/www/selectBbsNttView.do ?pageUnit=10&pageIndex=32&searchCnd=all&key=12&bordCd=3&searchCtgry=01,02&nttSn=46476 (accessed 3 July 2026).

^[23] Press release, ‘Announcement of Dark Pattern Monitoring and Corrective Action Results’ [translated title], KFTC (30 September 2025), www.ftc.go.kr/www/selectBbsNttView.do?pageUnit=10&pageIndex=24&searchCnd=all&key=12&bordCd=3&searchCtgry=01,02&nttSn=46694 (accessed 3 July 2026).

^[24] Press release, ‘Establishment and Implementation of the Voluntary Code on Online Interface Operations’ [translated title], KFTC (1 December 2025), www.ftc.go.kr/www/selectBbsNttView.do?pageUnit=10&pageIndex=2&searchCnd =all&key=12&bordCd=3&searchCtgry=01,02&nttSn=47494 (accessed 3 July 2026).

^[25] The Korea Online Shopping Association is a trade association of domestic online shopping mall operators. Twenty-eight major online shopping malls participated, including Coupang, Naver, 11st, Gmarket, Kurly, Musinsa, Danggeun Market, Lotte ON and Kakao Shopping.

^[26] Act on Fair Labelling and Advertising, Article 3(1)

^[27] Press release, ‘Recommendations on Improving Price Discount Display Practices at Online Shopping Malls’ [translated title], KFTC (19 May 2026), www.ftc.go.kr/www/selectBbsNttView.do?key=12&bordCd=3&nttSn=42957 (accessed 3 July 2026).

^[28] The KFTC published the ‘Online Dark Pattern Self-Management Guidelines’ [translated title] in July 2023, www.ftc.go.kr/www/selectBbsNttView.do?pageUnit=10&pageIndex=23&searchCnd=all&key=12&bordCd=3&searchCtgry=01,02&nttSn=46709 (accessed 3 July 2026).

^[29] Press release, ‘Distribution of Revised Guide on Disclosure of Financial Interests’ [translated title], KFTC (2 December 2025), www.ftc.go.kr/www/selectBbsNttView.do?pageUnit=10&pageIndex=1&searchCnd=all&searchKrwd=%EC%95%BD%EA%B4%80&key=12&bordCd=3&searchCtgry=01,02&nttSn=47391 (accessed 3 July 2026).

^[30] Press release, ‘Correcting Unfair Terms of 7 Major Open Markets’ [translated title], KFTC (27 April 2026), www.ftc.go.kr/www/selectBbsNttView.do?pageUnit=10&pageIndex=1&searchCnd=all&searchKrwd=%EC%95%BD%EA%B4%80&key=12&bordCd=3&searchCtgry=01,02&nttSn=47438 (accessed 3 July 2026).

^[31] Press release, ‘Correcting Unfair Performance Paid Membership Terms of 19 Major Venues and Ticketing Platforms’ [translated title], KFTC (6 May 2026), www.ftc.go.kr/www/selectBbsNttView.do?pageUnit=10&pageIndex=1&searchCnd =all&searchKrwd=%EC%95%BD%EA%B4%80&key=12&bordCd=3&searchCtgry=01,02&nttSn=47438 (accessed 3 July 2026).

^[32] ‘Chairperson Biung-Ghi Ju: Unfair Platform Practices Are a Core Task of the KFTC… Supporting Legislation’ [translated title], Dailian (6 May 2026), www.dailian.co.kr/news/view/1641288 (accessed 3 July 2026).

^[33] The Democratic Party of Korea currently holds more than half the seats in the National Assembly as the ruling party.[33][33]

^[34] The bill applies only to online platform intermediary operators with total revenue of KRW 10 billion or more, or total transaction value through business users of KRW 100 billion or more.